AFF2751

Futures and options markets

Ms Kathy Avram

6 points
* Second semester
* Distance and Caulfield
* 3 hours per week
* Prerequisite: AFF2401

Objectives On completion of this subject students should be able to demonstrate an understanding of the development of derivatives markets in Australia; appreciate the use of hedging techniques and pricing relationships; assess the role and use of options and associated pricing relationships.

Synopsis The evolution and history of futures markets; hedging exposures using both futures and options markets; identifying arbitrage opportunities in futures markets; use of futures and options in portfolio management; exploring fundamental and technical analysis.

Assessment Assignment (4000 words): 30%
* Examination (3 hours): 70%

Prescribed texts

Chance D M An introduction to derivatives 3rd edn, Dryden, 1995